...In recent years, the economic situation has experienced dramatic change and this huge variation stimulates financing needs of SMEs in China greatly. Nevertheless, the majority of SMEs have financing difficulties due to their personal limitations and insufficient external support. As a result, it is hard for them to have a further development. With the advent of the information technology revolution, Internet Finance is considered as a new effective way to solve the financial difficulties of SMEs and it brings about many positive influences, although there are some negative aspects to improve. This essay will firstly inform background information about the reasons for SME financing difficulty as well as Internet finance’s current condition. Additionally, it will give evidence for the main argument that there are more positive influences than negative influences of Internet finance on minor enterprises’ financing issue. Finally, some practical suggestions will be put forward, helping Chinese SMEs to find the optimal choice in financing. Background There are more SMEs in China than before in accordance with the relevant statistics. According to Wang (2011), SMEs account for 99.9% of the total number of firms, provide more than 60% of GDP and 70% of import and export trade. The data reveal that SME is an important part of Chinese economy and makes a great contribution. In addition, SMEs have a profound influence on social issues by offering 84% of total employment and 80% of urban...
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...is financial resources? Companies often need finance for starting or continuing business operations. Small businesses typically need start-up finance, while medium and larger companies may need finance to expand operations. Different types of financial resources are usually available based on the company’s size and needs. Each financial resource offers different advantages or disadvantages to companies. Financial resources are the money that are available to a business for spending in the form of cash, liquid securities and credit lines. Before going into business, an entrepreneur needs to secure sufficient financial resources in order to be able to operate efficiently and sufficiently well to promote success. Short definition of internal and external finance. To provide internal and external finance means to engage in business activities using either monies from within a company or funds from outside. This is the key and most important difference between these two funding options. When a company uses internal finance, it takes advantage of existing supplies of capital from profits and other sources. External finance involves the use of money new to the company, from outside sources, to fund planned activities. Consequence of not managing your financial finance. By not managing your financial resources things can go wrong quickly for your company. Your company will be at risk and I’m speaking about financial risk. Financial risks are associated with the financial structure...
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...Guillermo Furniture Store Finance Concepts July 2, 2011 FIN/571 Guillermo Furniture Store Finance Concepts The risks associated with financial concepts in the case of Guillermo Furniture raises when a company considers joining forces with another company. In such a case with Guillermo Furniture, trying to forecast future purchasing of materials is more difficult because the chance for over purchasing may come into play if the company does go the route to sell itself to a competitor. The questions that come to the forefront is whether the merger will pick up what the other company has on hand. Risks vs. Reward Guillermo Furniture having been approached by a competitor about joining forces brings into play the idea of risk vs. reward. Guillermo Furniture has thought about selling the company or maybe closing the business and possibly merging with the competition. Should Guillermo Furniture do any of the above, what are the risks vs. reward in any of these options? Using information obtained from the sales forecast is used to create the sales budget. “This budget is a result of decisions to create the conditions that will generate a desired level of sales.”(Horngren, 2008). Managers usually take into consideration a number of factors when examining risks for their company. These factors can be looked upon as risks for the company as well. Some of the factors include reviewing past patterns of sales which can be used to help with predicting future...
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...Risk Assessment Matrix (High-Medium-Low) The following Matrix can be used to help determine the risk ranking of a finding and its associated recommendations. Classification of high, medium or low usually occurs because of a combination of factors. The problem noted and or failure to implement a recommended solution could have the following impact: High Medium Low Potential significant life/ safety threat. Remote life or safety threat. No life or safety threat. Potential exposure of large volume PII or other confidential data. Potential exposure of any amount of confidential data. No confidential data. Impact on financial statements is material (PWC SAS-112 financial risk is rated high). Reportable financial statement impact. (PWC or SAS 112 medium risk ranking). No financial statement impact. (PWC or SAS 112 low risk ranking). Potential campus wide impact: 1. Major administrative computing system internal control weakness. 2. Potential for mission critical process or system failure or breach. (e.g.: inability to timely register students or pay employees). Departmental or unit only impact. Small subsection of people or transactions affected. Large dollar amounts or highly liquid assets at risk (cash). Medium dollar amount at risk or assets not liquid or convertible to cash. Low dollar amount at risk. Lack of major control step. Significant control weakness creates potential for fraud. Other compensating controls exist. Several other compensating controls. This...
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...also have to take it into consideration. First the positive points are: High incomes Having my own business can give me an opportunity to have a high salary. The income which I earn is related to the productivity pricing and market plan. All these activity is under my control. Do the things you like Owning a company provides you an opportunity to work in a place that you really enjoy. Working in an industry which are passionate helps you work more efficient and motivated. And it also allowed you to create new things and increase your own satisfaction. The negative points are: Financial risks The disadvantage of owning a business is that maybe you will suffer the financial risk. Whether you used your savings or borrowed money for start up costs, the money invested in your company is at risk.(Johnson, 2014) If you run your own business, you are the only one who take responsibility of the risk. Once the company go out of the business, the owner will lose their initial investment or default the bank loans and it will cause bankrupt. Stress As a business owner, you have to take care of everything in your company.There are some things your usually worry about—competition, profit, employees, customer problems and etc. As the owner, you are responsible for being your employees as well. Time occupation People always think running a business that they can have more time to accompany their families and more spare times. However the reality is contrast, running a business is much...
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...THE RISKS OF ENGAGING A MINING IN AFRICA Business Report April 9, 2015 Chi Minh Bui Word count: 1,121 Table of contents Executive Summary 3 Introduction 3 Main findings 4 1. The exploitation risk is medium 4 2. The security risk is high 5 3. The health risk is low 5 4. The economic risk is low 5 5. The financial risk is medium 6 Conclusion 6 Recommendations 7 References 8 Executive Summary The purpose of this report is to explore and explain the opportunities and challenges Winton Carter Mining (WCM) may face when entering into a joint venture with ATZ in a mining operation in Kango, Gabon, Central Africa. WCM has an opportunity to apply its experience in the mining industry in terms of management and production for short-term and long-term gain. By engaging in the project, WCM will improve its reputation, increase its goodwill because of a likely increase in its share price, and potentially establish a new considerable source of income. The risks, however, are substantial. Firstly, security risk that is considered high due to social instability of African countries may reduce the site’s revenue considerably and cost about $1 million annually to mitigate. Secondly, there is a medium exploitation risk because of quality of geologists’ reports. Moreover, economic risk and financial risk...
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...Risk Paper 1 Risks Involved During The Purchase Of Our Home 1/25/2015 Class: Proj-595 Professor: Dr Madireddy [Type the author name] • INTRODUCTION In the spring of 2013 my family embarked on a new adventure. We moved 2800 miles from San Diego CA. to Franklinton NC. because of a promotion I accepted with my company. This was a very exciting and frightening time of transition for my family. There were many changes we had to make as well as some very important decisions to make. The biggest decision and question we had to make and answerer was are we going to buy a home or are we going to rent? Once the decision was made we were going to buy a home many questions and decisions had to be made and many risks had to be addressed. The risks we had to address when looking at purchasing a home include financial risks and environmental risks. • RISKS INVOVLED DURRING THE PURCHASE OF OUR HOME Home buying is a very exciting experience. Whether you are a first-time buyer or an experienced owner, buying a house requires a "preflight check," in the words of Barry Zigas, director of housing policy for the Consumer Federation of America. (Dratch) Before doing any risks assessments we first had to put down the home purchase into a pros and cons diagram to see if this was something we were willing to take on. With that decided we then proceeded to look at the risks involved. As my family experienced and statistics have shown that owning a home is not...
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...characteristics. The terms main definition is -a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk. To me personally the term means someone who can run a business that is strong minded, a risk taker, and is not afraid of failure. This paper will tell you more about what these 3 characteristics mean. Being strong minded is so important for someone who is an entrepreneur for many reasons. You have to stay positive when things go wrong and stay focus when things are good. My uncle for example owns a business and is an entrepreneur himself, he tells me every day how hard it is to stay strong minded. This is one of the characteristics of the word entrepreneur. The term entrepreneur goes way back to the late 1700’s in which the term first appeared in the French dictionary in 1723 to describe a person who organizes and operates a business by taking a financial risk. Which shows you that taking risks is important in becoming a successful entrepreneur. You can look at successful business men who are entrepreneurs and I guarantee they have had to take so many risks. Shark Tank’s Barbara Corcoran turned a $1,000 loan into a $5 billion-dollar real estate business that she sold for $66 million back in 2001. That just goes to show you that you can’t be afraid to take risk. An important part of my definition to this term is that you have to be ready to struggle and fail at times. Richard Branson said it best “Few first ventures...
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...1) How much business risk does AHP face? How much financial risk would AHP face at each of proposed level of debt? a) General risks: • Strategic risk from internal management structure change, due to Laporte was approaching retirement that will cause another big waive of change for the whole senior management team as well as the company’s strategy. • Market risk. Pharmacy had not reached the heavy competition yet during early 1980s, AHP was still the early adopter in the industry, however, the nature of the market will change very quickly follow by the globalization and fast developing of medical technology, efficiency of information communication and financial industry. The competitor will able to launch variously strategies, with wild coverage of products via extended channels in more regions/counties. • Because of debt free strategy, the company had limited investment in R&D. Even they can provide the “me to product” but the industry will change with more related regulation to be generated from government, that will require each pharmacy company spend longer time, more money to do the testing before launch to the market, “me to product” will slow down the process to catch the new market segmentation. • Brand risk, due to the company was only focus on the interest of shareholders; lack of CSR (corporate social responsibility) will be another risk. • Over centralized power in the leadership even $500 expense need approved by CEO. Not easy money system and not enough flexibility...
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...will analyze the risks in the system, identify all risks and internal control points by displaying them in a flowchart, design internal controls to mitigate risks to the systems, evaluate the application of internal controls to the system, and discuss other controls outside of the system that our client may need. Analyze the risks in the systems that your team analyzed. Every system that is implemented in any company “faces risks [that] come from both external and internal parts of the organization” (Bangranoff, Simkin & Strand, 2008, p. 243). The characteristics of the system that we recommended for Kudler Fine Foods does not exclude these risks. The system has a wide variety of tasks that are needed in order for it to work properly. The main risk that stands out in the outline of this system is to make sure the segregation of duties within the system are properly in place. All of the tasks within the system should be separate and assigned to different employees throughout each store. For example, the same employee that takes inventory cannot be the same employee that processes the invoices in the system for the vendors. This is an internal risk that gives the employee an opportunity to order products from a vendor for themselves and having the company pay for what they ordered. Separating this task will allow an internal audit between the employee who manages the inventory and the employee processes the invoices to pass because it will show that the risk level is low. ...
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...been focused on trying to expand the business as well as improving performance internally. The key features to GE’s successful business model lies within their organizational culture, core competencies and specific strategies used. GE’s organizational culture is about individual achievement which provides everyone with opportunities to grow themselves as individual such as exercising their responsibilities, integrity and being more creative. GE’s core competencies adds value to the success of its business model as the GE selects best practices and implements them perfectly which will be beneficial to them while promoting future growth. Furthermore, GE aims to become the market leader for the sectors they are profitable in, such as their financial services sector where GE Capital has grown hugely. Changes to the business model and strategy GE focuses on innovating with new business models by listening to what their customers want such as having more flexibility achieved by converting capital investments to operating expenses. Changes have been made in relations to GE’s culture which focuses on providing them with a lean management, speed & competitiveness, commercial intensity and digital capability. These simplified changes are the source for improvement in GE’s operating performance. GE’s current strategy focuses on the areas that are important to shareholders. Strategic choices include getting out of consumer finance, being in market where they are leaders, building competitive...
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...Assignment 2: Designing a Training Program B-Swann LLC: Sponsors a two days financial training program for 20 members B-Swann LLC, sponsors a two days financial training that are offered as part of the “ added benefit for members”. The training are educational. Money management concepts and tools are presented in an informative, enjoyable, and professional manner. The training feature practical information and are relevant to all income and females educational occupation. B-Swann was founded 2013 , in Greensboro, North Carolina . B-Swann defines who we are. A legally organized and incorporated organization comprising of Black people with a mission, aims and objectives of unifying ourselves, to build a sense of togetherness, for the purpose of helping ourselves and the entire Pan – African community in general in the areas of education, health, business wealth and finance as well supporting political initiatives for Black people. B-Swann intend to build a strong Black community in which we can stand together as a dignified and respectful people. To build a sense of togetherness while instilling historical awareness and values of respect, trust, support and care for each other: • Creating jobs for our youth • Providing loans • Supporting Black businesses • Educational awareness, workshops and seminars The employees to be trained are the female members. After three decades of dramatic social change, more women are managing money than ever before. Whether they...
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...Relationship between corporate financial analysis and financial risk Any business will face some financial risk, its objective, not the people's will. However, if the business through good financial analysis, financial risk can be effectively prevented and controlled. In this regard, companies should focus on strengthening the financial analysis of the financial risks of business operations in a variety of financial risks for timely prediction and prevention, so as to improve economic efficiency of enterprises. Based on this, we have launched some discussion, want to contribute to a certain extent, corporate financial risk prevention. First, the financial analysis of the current Chinese enterprises widely used (A) comparative analysis Comparative analysis, as the name suggests, is to more than one set, or a set of comparative data or index, pairwise comparison, analysis, study, to determine the actual operating current business situation of enterprises and financial risks. Normally enterprises in comparison, and more is the issue and planned, the current number and the number of installments, business data and industry data, the actual number of the department and other departments and other indicators of the actual number of comparisons and analysis. (B) the structure analysis Structure analysis method refers to a particular financial indicators seen a whole, with its data as a part of the molecule, divided by the overall financial indicators to calculate the ratio...
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...and foreign subsidiaries as ways of expanding international sales. Exports can be very advantageous in increasing sales through a larger diversity and number of customers and hence raising profit, gaining global market shares, and increasing the potential to expand the company into foreign lands. However, it is possible that exporting the motorcycles could be more costly since it takes more time to develop such markets which might strain the finances of Harley-Davidson. Also, the products may have to be modified due to the country the motorcycles are being sent to, and I would have to take a financial risk that may be more time consuming and complicated. As CEO, I believe that Harley-Davidson will take the risk and export our products, as this will improve our sales overall and expand our business. Joint ventures are a present opportunity to grow and gain stability because it reduces risk through capital and resource sharing. In addition, joint ventures are yet another way for our company to expand its sales, increase its market, and possibly improve technology through another party. They can be disadvantageous if we are not on the same page as the other party, for example, if we don’t set a common goal. In a foreign setting, we would have to adapt to the culture and make some changes due to that. In all, the biggest cause to make joint ventures disadvantageous is miscommunication. I believe that we can communicate well with other parties, and so we will participate in joint ventures...
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...Treasury Takes Control of Commodity Risk Management Dimitris Papathanasiou, Coca-Cola HBC - 11 Sep 2013 Coca-ColaHellenic Bottling Company standardised its approach to risk management by transferring commodity risk management into treasury, so this central and vital business process could be managed by experts on an integrated basis with other financial risks and overseen by the financial risk management committee. This case study explains how organisational changes, combined with the introduction of risk management technology, enabled the organisation to plan and execute a consistent, cost-effective hedging strategy, with reduced counterparty risk exposure levels, improved transparency and stronger levels of control. Coca-Cola Hellenic Bottling Company (Coca-Cola HBC) is the world’s second largest bottler of the Coca-Cola Company’s products and the largest in Europe. Net sales revenue for fiscal 2012 was €6.8bn. Coca-Cola HBC is headquartered in Zug, Switzerland, and has a premium listing on the London Stock Exchange and a secondary listing on the Athens Exchange. It serves approximately 581m people in 28 countries. The company decided to concentrate its commodity market risk management within the treasury department, in response to high levels of profit and loss (P/L) volatility and the relatively high credit risk with its suppliers. The ensuing project involved change management for transfer of the company’s commodity risk hedging to treasury, the selection...
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